Exploration works have commenced and drilling is expected to commence at the Rio Mazoe zinc‐silver‐lead project in Mozambique in August 2014.
A drill program at the Rio Mazoe Project in Mozambique provided further confirmation of a likely Broken Hill Type (BHT) system at the project.
The company had raised the funds through a placement of 7,604,000 shares at $0.065 each to professional and sophisticated investors, representing a 12.3% discount to the volume weighted average price for the 15 traded days prior to the Company entering a trading halt on 10 June 2014.
Subscribers to the placement also received one free attaching option exercisable at $0.15 and expiring 7 January 2017 for every two shares subscribed for.
Many of the subscribers are existing shareholders of the company.
Metals of Africa will seek shareholder approval at an upcoming general meeting for a placement facility to raise up to $2 million in funds.
It will also seek approval for directors of the company to receive stock in lieu of two months' worth of fees.
Executive Director Cherie Leeden said the support from shareholders has been encouraging, and the net proceeds from the placement will be used by the company to continue its active exploration programs at its priority targets in Mozambique, Tanzania and Gabon.
The Rio Mazoe Project is located in the central province of Tete, Mozambique, and was first identified by BHP Billiton (ASX:BHP) in 2001 following a $20 million helicopter stream sediment sampling program across 5 countries.
It comprises eight exploration licences that are considered highly prospective for zinc, lead and silver.
Initial work undertaken includes the continuation of regional and infill soil sampling programs and is now focused on detailed geological mapping and preparation for ground geophysical surveys.
Maiden drilling at Rio Mazoe completed in April 2013 had returned results including 1.75 metres at 0.43 grams per tonne silver, 0.43% copper, 1.55% lead and 5.21% zinc and 1 metre at 63.28g/t silver, 0.6% copper, 9.32% lead and 10.81% zinc.
A series of outcrops have been identified at the Meque prospect which appear closely related to previously reported Broken Hill type (BHT) alteration identified 20 kilometres east at the Rulio prospect during the 2013 field season.
Meque outcrops range in thickness from 15 metres to 40 metres and consist of varying proportions of microcline, spessartine garnet, quartz, calcite, and gahnite.
The outcrops are bound on the upper and lower contacts by thin amphibolite units as is seen extensively at Rulio.
The BHT alteration at Meque has so far been observed to outcrop in three locations spread over a 2 kilometre strike distance.
Further mapping could link these outcrops together and may continue to extend eastward towards the Rulio prospect confirming Rio Mazoe's potential to host a large, world class BHT deposit.
The difficult market conditions in the exploration sector in recent years has provided Metals of Africa with a unique opportunity to consolidate its position as one of the most significant holders of quality exploration areas with drill-ready targets in Africa.
It owns the geophysical, geochemical and geological datasets for its assets in Mozambique, Tanzania and Gabon.
Most of its tenure has been selected on the basis of a compelling airborne geophysical anomaly with coincident geochemical anomalies and prospective geological settings.
In Tanzania, the Mkindu project is a geophysical anomaly that appears to be a text book IOCG exploration target while the Tanga project hosts a copper-gold system with a strike length of more than 5 kilometres.
The company has also acquired three properties in Gabon (one still in application).
These include the Kroussou project where BRGM survey and scout drilling in the 1960's identified an estimated "several thousand tonnes of contained zinc".
It has a prospective strike length of 70 kilometres, proximity to port and other transport infrastructure, giving it considerable exploration upside.
With $494,260 in funding secured through a placement of shares, Metals of Africa can proceed with exploring its attractive portfolio of quality exploration areas with drill-ready targets in Mozambique, Tanzania and Gabon.
The portfolio has been very carefully assembled by ED Cherie Leeden and it positions MTA with a unique opportunity to consolidate its position as one of the most significant holders of quality exploration areas with drill-ready targets in Africa.
Exploration success has been forthcoming, however there is a sense that this is just the tip.
MTA's maiden drill program at Rulio at Rio Mazoe has indicated a buried fold structure that is a highly favourable host for BHT lead-zinc-silver mineralisation.
This includes work that will lead to drilling at the Rio Mazoe zinc‐silver‐lead project in Mozambique from August 2014.
In all, with funding a fascinating exploration program will kick into gear in 2014.
Share price catalysts ahead include:
- An electromagnetic survey to commence this month to delineate zinc, lead and silver conductors potentially related to Broken Hill type mineralisation as priority drill targets;
- Interpretation of survey results and mapping; and
- Rio Mazoe drilling from August 2014.
This exploration work will determine if the Meque outcrops link together and extend towards the Rulio prospect, which would highlight the Rio Mazoe Project's potential to host a large, world class BHT deposit.
Metals of Africa is lightly capitalised with a market cap ofcirca $5 million and shares currently trading at $0.06.
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